Heat a heavy bottom pan on low heat and add sugar and oil to it. Let the sugar dissolve in oil over low heat
till it caramelizes – ensure that the sugar doesn’t burn. Add in the
onions and the lemongrass paste and cook for 4-5 minutes.

Increase the heat to high and add in the chicken.
Toss and mix the chicken well in the caramelized paste.

Reduce the heat to low, cover the pan and let the
chicken braise in its own juices at a low simmer for 15-20 minutes. Stir the
chicken every 5-6 minutes.

Add
the coconut milk and simmer for another 10 minutes or so. Adjust seasonings to
taste.